As the FC&S editor who answers homeowners' insurance questions, I know that one of the most common concerns for claims professionals is additional living expenses (ALE).
No matter how many questions I answer on the subject, there always seems to be another twist or turn in the issue. What is it that makes the ALE coverage so complicated?
For starters, it seems that the broadness of the coverage itself is a sticking point. The standard homeowner's policy provides coverage for an increase in living expenses incurred by the insured so they can maintain their normal standard of living. That standard of living is the key; how the insured lived before the loss is what needs to be replicated after the loss. So any animals kept on the property get boarded, and if the insured has a swimming pool or hot tub, alternative living arrangements with similar items are required.
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